Trade negotiations between the United States and Canada have collapsed, raising fears of a fresh escalation in the trade dispute between the two countries.
The breakdown came late Friday after days of negotiations aimed at reaching an agreement to prevent the United States from imposing new tariffs on Canadian imports.
US officials had earlier said the talks were making progress, but Washington and Ottawa failed to resolve their remaining differences before the deadline.
US Trade Representative Jamieson Greer accused Canada of abandoning the negotiations after introducing new demands and reversing some commitments reached during the talks.
Canadian Prime Minister Mark Carney, however, rejected the claim, saying the final conditions came from Washington and were unacceptable.
Carney described the US demands as “unfair, uneconomic” and said they raised concerns about the reliability of any potential agreement.
The disagreement centres on proposed tariffs affecting key Canadian exports, including automobiles, steel, aluminium and lumber.
The collapse of the talks could further strain economic ties between the two countries, whose manufacturing and supply chains are closely connected, particularly in the automobile industry.
Canada has threatened to impose retaliatory measures if Washington proceeds with the new tariffs, while a US official warned that the Trump administration could respond to any Canadian counter-tariffs.
The development leaves both governments facing renewed economic pressure, with businesses and consumers on both sides of the border potentially bearing the impact of higher tariffs and further disruptions to trade.
